When To Send An Invoice To Your Customer?

In business, invoices are used to bill customers for goods and services that were provided by businesses. They're also used to collect money owed to a company. This we are all aware of, a debate that has surfaced often is about the right time to send invoices. What if we tell you that the right time is decided depending on the customer and the job done?

Yes, you've heard it right. It is not complicated but an easy distinction, that will save you time and hassle if done right.  

Basics Of Invoice

There are several reasons why you might need to send an invoice to a customer. You might need to charge them for something they've ordered, such as a product or service. Or, you might need to ask them to pay you back for something they owe you, such as a loan or credit card balance.

Always set A Payment Schedule That Works For Both Of You. Once you've decided on a payment schedule, make sure both parties agree to it. If it is by check, you'll need to set up a system so that you can track payments and ensure that you're not being charged twice.

For more details on Invoices, do give this article a read: All You Need To Know About Invoices.

Here's How to Decide When It's Time to Send Them An Invoice.

The following are split on the basis of the types of clients and the time taken for each job. Find the one that fits you right. Be aware that business invoices could be in more than one type.

A. For Immediate Jobs

If it was a one-off job, where the job was started and finished in one go, without any work dues, post-check-ups, etc. You would naturally expect an immediate payment, for which an immediate invoice would be apt.

It is best to send the invoice with your work so that they remember to pay you. This will also ensure that your invoice is processed faster, leading to you getting paid soon.

B. Short Time Multiple Jobs

Sending the invoice after every job is a good idea even when you are doing multiple jobs for the same client over a short period of time. This makes tracking payments easier and ensures that there is constant cash flow.

Including a summary of the previous jobs in the current invoice makes it easier for the client. They will know exactly how much work has been done and the amount due.

C. Regular Clients Recurring Jobs

If you have a client who you do regular jobs for, then it might not be a bad idea to discuss and set up an invoicing schedule with them. You can set up a monthly, weekly, bi-weekly, or any other type of schedule that both you and your client agree on.  

Once this is done, the client will know when exactly to expect an invoice. This will also keep your income predictable.

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